- 8 - 469(c)(1); Fowler v. Commissioner, T.C. Memo. 2002-223; sec. 1.469-9(e), Income Tax Regs. The parties disagree on a number of different points concerning the application and relevance of section 469 to petitioner’s rental activities. Among those disagreements, they dispute whether section 469(c)(7) applies. Petitioner claims that section 469(c)(7) applies to her for the year in issue, and therefore section 469(c)(2) does not apply for that year; respondent disagrees. Under the circumstances, if section 469(c)(7) does not apply to petitioner for 2002, then she is subject to section 469(c)(2) for that year, which means that the rental loss is a passive activity loss and she is not entitled to the rental loss deduction here in dispute. Section 469(c)(7) does not apply to a taxpayer unless, in addition to another requirement, “more than one-half of the personal services performed in trades or businesses by the taxpayer during such taxable year are performed in real property trades or businesses in which the taxpayer materially participates”. Sec. 469(c)(7)(B)(i). In this case, the equation contemplated by the statute requires that we measure the extent of the personal services that petitioner performed as an employee of Symantec against the personal services petitioner performed in real estate trades or businesses in which she materially participated.Page: Previous 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 NextLast modified: March 27, 2008